97
Views
5
CrossRef citations to date
0
Altmetric
Original Articles

Investment and cash flow: evidence for asymmetries in European manufacturing

&
Pages 1191-1200 | Published online: 24 Sep 2007

References

  • Abel , A and Blanchard , O . 1986 . The present value of profits and cyclical movement in investment . Econometrica , 54 : 249 – 73 .
  • Arellano , M and Bond , S . 1991 . Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations . Review of Economic Studies , 58 : 277 – 97 .
  • Arrondo , R and Gomez-Anson , S . 2003 . A study of spanish firms’ security issue decision under asymmetric information and agency costs . Applied Financial Economics , 13 : 771 – 82 .
  • Audretsch , D and Elston , J . 2002 . Does firm size matter? Evidence on the impact of liquidity constraints on firm investment . International Journal of Industrial Organization , 20 : 1 – 16 .
  • Berg , C , Hansen , J and Sellin , P . 2004 . The financial accelerator and corporate investment Sveriges riksbank . Economic Review , 2 : 23 – 46 .
  • Bernanke , B and Gertler , M . 1990 . Financial fragility and economic performance . Quarterly Journal of Economics , 105 : 97 – 114 .
  • Bernanke , B , Gertler , M and Gilchrist , S . 1996 . Financial accelerator and the flight to quality . Review of Economics and Statistics , 78 : 1 – 15 .
  • Bernanke , B , Gertler , M and Gilchrist , S . 1999 . “ The financial accelerator in a quantitative business cycle framework ” . In Handbook of Macroeconomics Edited by: Taylor , JB and Woodford , M . 1341 – 93 . North-Holland, Amsterdam
  • Bodo , G , Colinelli , R and Parigi , G . 2000 . Forecasting industrial production in the euro area . Empirical Economics , 25 : 541 – 61 .
  • Bond , S and Meghir , C . 1994 . Investment models and the firm . Review of Economic Studies , 61 : 197 – 222 .
  • Bond , S , Harhoff , D and Van Reenen , J . 1999 . Investment, R&D and financing constraints in Britain and Germany, Working Paper No. W99/5 , London : Institure of Fiscal Studies .
  • Bond , S , Elston , J , Mairesse , J and Mulkay , B . 2003 . Financial factors and investment in Belgium, France, Germany and the UK: comparison using company panel data . Review of Economics and Statistics , 85 : 153 – 65 .
  • Bond , S , Klemm , A , Newton-Smith , R , Syed , M and Vlieghe , G . 2004 . The roles of expected profitability, Tobin's Q and cash flow in econometric models of company investment for Fiscal Studies, Working Paper No. 04/12
  • Desroches , B and Gosselin , A . 2002 . The usefulness of consumer confidence indexes in the United States, Bank of Canada, Working Paper No. 2002-22
  • Fazzari , S , Hubbard , R and Petersen , B . 1988 . Financing constraints and corporate investment . Brookings Papers on Economic Activity , 19 : 141 – 95 .
  • Gertler , M . 1992 . Financial capacity and output fluctuations in an economy with multiperiod financial relationships . Review of Economic Studies , 59 : 455 – 72 .
  • Gertler , M and Gilchrist , S . 1993 . The role of credit market imperfections in the monetary transmission mechanism: arguments and evidence . Scandinavian Journal of Economics , 95 : 43 – 64 .
  • Gertler , M and Gilchrist , S . 1994 . Monetary policy, business cycles and the behaviour of small manufacturing firms . Quarterly Journal of Economics , 109 : 309 – 40 .
  • Goergen , M and Renneboog , L . 2001 . Investment policy, internal financing and ownership concentration in the UK . Journal of Corporate Finance , 7 : 257 – 84 .
  • Greenwald , B , Stiglitz , J and Weiss , A . 1984 . Information imperfections and macroeconomic fluctuations . American Economic Review , 74 : 194 – 99 .
  • Guariglia , A . 1999 . The effects of financial constraints on inventory investment; evidence from a panel of uk firms . Economica , 66 : 43 – 62 .
  • Hubbard , G , Kashyap , A and Whited , T . 1995 . Internal finance and firm investment . Journal of Money, Credit and Banking , 27 : 323 – 29 .
  • Jaffee , D and Stiglitz , J . 1990 . “ Credit rationing ” . In Handbook of Monetary Economics , Edited by: Friedman , B and Hahn , F . 837 – 88 . North Holland : Amsterdam .
  • Jorgenson , D . 1963 . Capital Theory and investment behaviour . American Economic Review , 57 : 247 – 59 .
  • Kashyap , A , Lamont , O and Stein , J . 1994 . Credit conditions and the cyclical behaviour of inventories . Quarterly Journal of Economics , 109 : 565 – 92 .
  • Kiyotaki , N and Moore , J . 1997 . Credit cycles . Journal of Political Economy , 105 : 211 – 48 .
  • Lee , K and Shields , K . 2000 . Expectations formation and business cycle fluctuations: an empirical analysis of actual and expected output in UK manufacturing, 1975–1996 . Oxford Bulletin of Economics and Statistics , 62 : 463 – 90 .
  • Lovell , C and Tien , P . 2000 . Economic discomfort and consumer sentiment . Eastern Economic Journal , 26 : 1 – 7 .
  • Matsusaka , J and Sbordone , A . 1995 . Consumer confidence and economic fluctuations . Economic Inquiry , 33 : 296 – 318 .
  • Mourougane , A and Roma , M . 2002 . Can confidence indicators be useful to predict short-term real GDP growth?, European Central Bank, Working Paper No. 133
  • Myers , S and Majluf , N . 1984 . Corporate financing and investment decisions when firms have information that investors do not have . Journal of Financial Economics , 13 : 187 – 221 .
  • Oliner , S and Rudebusch , G . 1992 . Sources of the financing hierarchy for business investment . Review of Economics and Statistics , 74 : 643 – 54 .
  • Ozkan , N . 2002 . Effects of financial constraints on research and development investment: an empirical investigation . Applied Financial Economics , 12 : 827 – 34 .
  • Peersman , G and Smets , F . 2002 . The industry effects of monetary policy in the Euro Area, European Central Bank, Working Paper No. 165
  • Rafferty , M and Funk , M . 2004 . Demand shocks and firm-financed R&D expenditures . Applied Economics , 36 : 1529 – 36 .
  • Rondi , L , Sack , B , Schiantarelli , F and Sembenelli , A . 1998 . Firms’ financial and real responses to monetary tightening: evidence for large and small italian companies . Giornale degli Economisti e Annali di Economia , 57 : 35 – 64 .
  • Saltari , E and Travaglini , G . 2001 . Financial constraints and investment decisions . Scottish Journal of Political Economy , 48 : 330 – 44 .
  • Santero , T and Westerlund , N . 1996 . Confidence indicators and their relationship to changes in economic activity, OECD, Economics Department, Working Paper No. 270
  • Sargan , J . 1958 . The estimation of economic relationships using instrumental variables . Econometrica , 26 : 393 – 15 .
  • Schaller , H . 1993 . Asymmetric information, liquidity constraints and Canadian investment . Canadian Journal of Economics , 26 : 552 – 74 .
  • Stiglitz , J and Weiss , A . 1981 . Credit rationing in markets with imperfect information . American Economic Review , 71 : 393 – 410 .
  • Townsend , R . 1979 . Optimal contracts and competitive markets with costly state verification . Journal of Economic Theory , 21 : 265 – 93 .
  • Utaka , A . 2003 . Confidence and the real economy-the Japanese case . Applied Economics , 35 : 337 – 42 .
  • Vermeulen , P . 2002 . Business fixed investment: evidence of a financial accelerator in Europe . Oxford Bulletin of Economics and Statistics , 64 : 213 – 31 .
  • Vijverberg , C . 2004 . An empirical financial accelerator model: small firms’ investment and credit rationing . Journal of Macroeconomics , 26 : 101 – 29 .
  • Westhead , P and Storey , D . 1997 . Financial constraints on the growth of high technology small firms in the United Kingdom . Applied Financial Economics , 7 : 197 – 201 .
  • Whited , T . 1992 . Debt, liquidity constraints and corporate investment: evidence from panel data . Journal of Finance , 47 : 1425 – 60 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.